Alibaba Rival JD.Com Spurs Probability Of Price War With Latest Discount Spree

JD.Com, Inc JD proposed to dole out discounts across its online shopping platforms from Monday in a 10 billion yuan ($1.4 billion) campaign to tap new users ahead of an anticipated Chinese economic recovery this year.
JD.Com's campaign has fueled concerns of a margin-eroding price war in retaliation from rivals like Alibaba Group Holding Ltd BABA or upstart PDD Holdings Inc PDD, Bloomberg reports.
Meituan MPNGY MPNGY was reportedly expanding into Hong Kong and looked to hire 10,000 people on the mainland to curb heightened competition from new entrants like ByteDance Ltd in the $145 billion Chinese food-delivery arena.
China's internet firms ramped up efforts to beat each other since Beijing's sweeping crackdown on the tech sector, prompting an abrupt surge in competition.
The Chinese government has begun rolling back restrictions since late 2022, with intent of restoring a Covid-ravaged economy.
In February, JD.com reported third-quarter FY22 revenue growth of 11.4% year-on-year to $34.2 billion, missing the consensus of $34.4 billion.
JD Segment Performance: JD.com's net product revenue grew 5.9% Y/Y to $27.7 billion. Net service revenues rose 42.2% Y/Y to $6.5 billion. JD Retail revenue grew 7% Y/Y to $29.8 billion.
Non-GAAP net income per ADS of $0.88 beat the consensus of $0.63.
Price Action: JD shares closed higher by 0.83% at $47.46 on Friday.